There is no question that the real estate market in Manhattan Beach has been on fire since the beginning of 2013. Record low inventory and intense demand for luxury homes and prime locations has created a building boom not seen in a long while. Multiple offer situations seem to be the norm and the number of all cash buyers continues to drive this already competitive market. This continued demand from buyers and builders alike has driven prices upward to record numbers and nowhere is the demand greater than in the sand section.

The most recent example was the walkstreet home located at 2401 Manhattan Ave. Just a block to the beach and having fantastic corner lot ocean views this home was certainly going to interest both the owner/user looking for a great location and builders seeking the same. The home was listed at $2,495,000 which is already a huge number for a half lot home but all indications appear that the home had at least 11 offers and sold over $3.0M* which is a staggering number for a home with the limitations that come along with a 1,352 square foot lot. Any future build will be limited to around a max square footage of 2000 feet. The last sale of a new construction half lot (not on a walkstreet which certainly adds value) closed at $3.3M at 124 23rd Street. Over $3.0M for this likely tear down at 2401 Manhattan Ave is a very large number indeed and shows just how far values have come in the past 24 months.

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As a local Manhattan Beach agent, I represent many buyers in Manhattan and Hermosa Beach and have definitely noticed in the current market that the old standard “location, location, location” just doesn’t hold true at the moment. In most markets buyers tend to be picky and don’t want certain streets, don’t want to be too close to commercial buildings, don’t like busier areas and are happy to wait until something better comes along. While some of these factors still may be relevant, it’s certainly not the critical factor that it usually is. Even “locationally challenged” homes seem to have little problem selling for top dollar.

Normally challenging streets such as Rosecrans, Pacific, Valley, Ardmore and Prospect don’t seem to be so “locationally challenged” at the moment.

Recent home sales and the prices they sold for have shown clearly that the demand for homes in Manhattan and Hermosa Beach is so high that people are willing to overlook sub A+ locations to live in the area. Prices on these somewhat busy streets inlcude 2025 Prospect in Hermosa…a small 2 bedroom cottage for $870,000, 1929 Ava (fronting Ardmore) in Hermosa selling for $2.1M, 548 Marine in Manhattan Beach at $2.65M, 588 Rosecrans at $1,545,000. All of these numbers would have been unheard of 18 months ago and many of these homes likely would have remained on the market for some time….but not these days. Buyers should be somewhat cautious and remember that these market conditions won’t be around forever. Sellers on the other hand likely will not see an opportunity like this again for quite a while and should take full advantage of the incredibly favorable market conditions.

The market in Manhattan Beach continues to be dominated by luxury homes an ever increasing median home prices. Of the current 68 homes active on the Manhattan Beach MLS, 40 of them are priced at $2,000,000 or higher. Only 7 of the 68 are priced below $1.0M which makes Manhattan Beach one of the pricier neighborhoods in Southern California. Over the last 18 months we’ve seen an incredible influx of cash and high net worth buyers enter the market and prices have been driven up quickly.

The sand section of Manhattan Beach is the epitome of luxury coastal living with spectacular beachfront “Strand” homes, walkstreet homes with stunning views and all within walking distance from the beach. Here’s a quick recap of what’s going on in the Manhattan Beach sand section real estate market:

While most areas of Manhattan Beach have seen fewer transactions in 2014 due to the record low inventory, that’s not the case in the micro real estate market of Manhattan Village. Not only have there been an abundance of recent homes for sale, but many of them are the usually rare “estate homes”. There are currently 5 homes for sale in this gated community in Manhattan Beach, as well as 4 homes currently in escrow. Prices in Manhattan Beach’s only gated community have been on the rise for the past 18 months, especially when dealing with the larger floorplan townhomes. See below for details on the current homes for sale in Manhattan Village.

Current Manhattan Village Homes for Sale

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Manhattan Beach real estate….by the numbers

May marks the 5th straight month with an increase in available homes for sale in Manhattan Beach with 65 current MLS listings as of May 5th, 2014. See information below on the current market trends including current MLS listings, recent sales, pending home sales and home prices in this luxury coastal community in Southern California.

We may be finally seeing some relief from record low inventory in the luxury market of Manhattan Beach CA. Other than the peak summer months of 2013 we have seen record and near record lows for active homes for sale. As of May 5th there are currently 65 properties for sale in this coastal community which is a dramatic improvement over the record low 25 homes for sale in December. Although we’ve now seen 4 straight months of increases in the available homes on the market, inventory is still nowhere near recent year highs which saw over 300 homes for sale in 2009. Due to the duration of this low inventory, pent up demand has driven prices to peak levels and in some premier locations well beyond peak prices prior to the bubble years.

The only thing hotter than the 80 degree days we’ve seen so often in January is the real estate market along the coast. The market seemed to slow just a bit and appeared to finally be calming down, but recent listings and sales indicate that we’re quickly back in frenzy mode. Of my last two sales, both buyers were willing and happy to pay a premium if it meant the difference in getting an accepted offer. Many recent home sales have been at, or over list price, even with the inflated list prices and as another realtor recently said “price was not an issue for her buyer” which makes for a challenging market for buyers trying to stay within a budget. The information below is a brief overview of real estate in Manhattan Beach in the past 30 days. The key information is to not that there are far more homes in escrow then active on the MLS with an almost equal number of closed sales to current listings.